Investing in Real Estate & REITs

Real estate investing runs the gamut in terms of risk and investment success. The first rule of real estate investing, even before location, location, location, is be very careful with whom you are dealing. For some reason, real estate is fraught with unscrupulous characters, many of whom you'll see on late night television commercials with their "no-money" down methods of becoming millionaires. Only a very small percent of these so-called real estate gurus are legitimate.

If you are seriously considering investing in real estate property, it means essentially that you will need:

Investment capital, or a legitimate means of attaining some without putting yourself in debt.

A good knowledge of the real estate market and the neighborhood in which you are looking to buy property.

Good management, people and negotiating skills

The ability to do repair work or access to people who can do it for you. The name and number of a property inspector or engineer.

Unless you are able to find, evaluate and buy houses that are either in foreclosure or fixer-uppers, which can be turned around quickly, you will most likely serve as a landlord for the property while it increases in value. Be careful to whom you rent because your property must be well-maintained.

Since legitimate real estate investing means having some money to make money, you need available capital. For this reason, many people go into real estate after coming into a sizable amount of money. For example, empty nesters who sell a large home for $500,000 and buy a smaller condo for $250,000 have money to purchase another property or two. Make sure to research your location. Go to local town board meetings, do research in libraries and go on the Internet to find out as much as possible not only about the location today, but about plans for the area over the coming years.

And then there are REITs - Real Estate Investment Trusts. This is a way of investing in real estate for a lot less money and without having to worry about fixing a tenant's leaking bathroom pipes in the middle of the night. REITS invest in various corporations involved in real estate, ranging from industrial parks to shopping centers to construction companies. They are listed on the NASDAQ and the stock exchange.

Essentially REITS work in the same way as mutual funds, except they set up a diversified portfolio that deals only in real estate. They primarily pay the bulk of their earnings in investor dividends. Before investing in a REIT, consider:

The economic conditions where the key holdings are located

Past performance of the REIT and future projections

The manager of the REIT, who operates like a mutual fund manager

The overall state of the real estate market

REITS, like stocks, bonds and mutual funds, have high and low periods. Like other income-producing vehicles, they can be strong investments over time and pay dividends. They are fairly liquid and are a much safer way of investing in real estate than buying property.

Neda Dabestani-Ryba is a licensed Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: http://neda.dabestani.pcragent.com/ Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

---

Searching the Hawaii Property Listings

Maui is an island so full of life and vivacity... Read More

Home Selection Checklist - A Good Aid When Choosing a Home

This home selection checklist is a tool to help you... Read More

Important Information For Condo Buyers

Here is a step by step guide for buyers looking... Read More

I have a buyer for your property and I can sell it now!

A Realtor has just talked to you and said, "I... Read More

Houses For Sale By Owner - Negotiating Tips

Houses for sale by owner, also known as "FSBOs," are... Read More

Dealing With Dual Real Estate Agents

Historically, real estate agents have represented the seller of a... Read More

Is Housing and Real Estate Bubble Hype Irrational Exuberance?

Not so, says the author of this article and four... Read More

Expenses of Home Ownership

Hopefully all goes smoothly when you purchase your home. In... Read More

Transforming Doghouses into Dollhouses

Successful real estate investing depends largely on a correct assessment... Read More

One Stop Shop for Buy to Let

As the buy to let market continues to go from... Read More

Estate Planning

Estate planning can enable you to control your property while... Read More

Real Estate Investing - House Problems

Houses can have lots of problemsReal estate investing requires expertise... Read More

How to Build Your Free House

What if you could "place an order" for the construction... Read More

At Home In Your Overseas Home

Homeownership, in any form, is a big step for most... Read More

How to Sell Your Own Home and Save Thousands of Dollars

Most people take the easy way out when selling their... Read More

Curb Appeal

First, lets start with what it is. Curb appeal is... Read More

Conversation & The Real Estate Investor

One key that makes investors is conversation or should I... Read More

What is a Foreclosure?

A foreclosure is an action taken against a property owner... Read More

Joint Ventures In Real Estate Development; So How Do They Work?

There are many reasons why you would consider joining with... Read More

Escrow Accounts ? Are You Paying Too Much?

Money in escrow is "dead money". It doesn't earn interest... Read More

On the Crossing of Continents

Cyprus is situated in the north-east Mediterranean on the crossing... Read More

Just Give Me Eleven Reasons to Buy in Dubai

Buying overseas property is not always for the fainthearted but... Read More

Selling a House is Easy

The thought of selling a house strikes fear into most... Read More

Renting a House

Renting a house or a room in your home is... Read More

The Best Way To Get Real Estate Listings

The Real Estate Industry is HUGE and is a golden... Read More

Do You Need to Download a Landlord Inventory On-Line Today?

Do you need to download a Landlord Inventory on-line now?... Read More

The Echo Boomers - The Next Big Consumers

The Echo Boomers or Generation Y currently make up about... Read More

Are Condo Hotels What the Orlando Real Estate Investor Has Been Looking For?

Earlier this year the Hawthorn suites in Lake Buena Vista... Read More

Investment Real Estate Done Right -- Your Quickest and Safest Path to Wealth

In investment real estate the quickest way to wealth is... Read More

FSBO - How to Prepare Your House to Sell

Did you hear that? Prices of houses in Phoenix have... Read More

How to Use Design Psychology to Stage Your Home for a Top-Dollar Sale

A new business venture to help home sellers, home staging,... Read More

Customer Service ? The Real Estate Revolution

Traditionally, real estate has been viewed as a sales industry.... Read More

Rental Property Management - Ten Questions

Why hire rental property management? Because doing it all yourself... Read More